Following the release of the Treasury Department’s new report on the Consumer Financial Protection Bureau’s arbitration rule, CUNA chief advocacy officer Ryan Donovan issued a statement expressing appreciation that the report highlights flaws in the CFPB’s analysis about how its rule will impact credit unions, their members, and other financial service providers and consumers:
“The Treasury report sheds light on the fact that the rule will ‘generate massive costs borne by businesses and consumers alike.’ This is particularly true for credit union members, who are directly impacted by class action litigation since the credit union member-ownership structure means resources spent on costly litigation come out of the pockets of members through the pooled resources of the membership. The CFPB’s dated research conducted from 2008-2012 fails to address these concerns, and many other developments in the marketplace over the years.
“Credit unions continue to educate policymakers about the harm class action litigation causes for credit unions because of their size and membership-owner structure. Credit Union National Association (CUNA), state leagues and credit unions have had a several meetings over the last several weeks – both as part of our Hike the Hill program and through state-based visits – highlighting the importance of the Senate taking action on the resolution of disapproval. We’re hopeful that the Senate will take up the resolution very soon.”